Members’ best financial interests were at the centre of AMP’s move to appoint TAL, with the decision following an extensive tender process. TAL was selected from a group of Australia’s leading life insurers and will deliver members with greater retirement benefit protection, security and insurance cover of the highest quality and value for their retirement.

How is the switch to TAL progressing?

Your insurance has been transferred to TAL from 1 April 2024 and the TAL terms and conditions shared in your Significant Event Notice now apply.

We have updated insurance details on My AMP for some members. We continue to update our systems to reflect all member insurance details.

Changes to the terms and conditions

We’ve listed below additional information about the changes to the terms and conditions of the insurance cover that’s available under your super plan. These changes apply from 1 April 2024 once TAL becomes the new insurer of the AMP Super Fund.

Frequently Asked Questions

Why is AMP changing insurer?

We’ve reviewed the insurance arrangements that are provided by the current insurer, with a range of other insurers to make sure the insurance terms and prices are competitive. After thoroughly comparing the proposals that were submitted by 6 insurers, the Trustee decided to select TAL Life Limited (TAL) as the new default insurer for the AMP Super Fund as it believes TAL can offer our members and employers the best outcomes.

Why did the Trustee select TAL?

The Trustee selected TAL as the default insurer after they completed a comprehensive market tender and reviewed the proposals made by 6 insurers. The Trustee selected TAL because it believes this is in the best interests of members. For many members, the switch to TAL will include changing how the amount of their insurance is calculated as it will now reduce as they get closer to retirement when they usually don’t need as much cover. Overall, the Trustee believes the insurance cover offered by TAL is both appropriate and sustainable.

The Trustee selected TAL as most members will be provided with a contemporary insurance design where the amount of cover changes as members move through different stages of life. The majority of members will have lower premium rates so their super balances are less likely to be impacted by higher levels of erosion. Also, both members and employers will benefit from TAL’s innovative digital services, online claims processes and other programs.

When will the insurance change?

If you have insurance on 31 March 2024, we’ll switch your insurance to TAL on 1 April 2024.  Any ongoing claims will continue, uninterrupted, with the current insurer.

What is the Lifestage Curve?

The Lifestage Curve is a new insurance design that automatically changes the amount of your insurance cover as you age, which aims to give you the cover you need when you need it.

The introduction of Lifestage cover now means:

  • For younger members, there’s a higher level of TPD cover because they are less likely to have mortgages and dependents, but they may still incur costs if they become disabled.
  • For middle-aged members, there’s a higher level of Death and TPD cover because many have mortgages and dependants and haven’t yet built-up significant savings.
  • For older members, their cover tapers to a minimum amount before the cover expiry age (retirement age), as the Lifestage Curve recognises that many of these members have savings to draw upon in addition to insurance cover.

Why has my insurance cover increased or decreased?

From 1 April 2024, your current Death and any TPD cover will be converted to lifestage units of cover where your insured amount changes with age and reduces as you get closer to retirement. The amount of insurance attached to a unit also changes as you age. When we convert your insured amount to the closest number of units, it may change slightly (ie increase or decrease) as shown below.

Example – cover increase:

If you have $100,000 Death cover, and are 40 years old next birthday, this will convert to 3 units of cover (at $34,000 per unit) so your cover will increase to $102,000.

Example – cover decrease:

If you have $100,000 Death cover, and are 49 years old next birthday, this will convert to 4 units of cover (at $22,700 per unit), so your cover will decrease to $90,800.

Example – cover changed to minimum insured amount:

If you have $10,000 Death cover and are 62 years old next birthday, this will be increased to the minimum insured amount of $15,000 as $10,000 is below the TAL minimum insured amount.

Do I still have the same type of cover? Have my terms and conditions changed? Do I keep all my current insurance benefits?

In most cases the types of insurance cover you hold will remain the same. If there are changes, these will be set out in the letter we sent you during January or February 2024. Look at the section ‘Your insurance cover’ to see your estimated new cover amount, charges and other details.

Why have my premiums increased?

New TAL premium rates have meant that insurance premiums have increased for some members. In most cases, your premiums may have increased because we’ve needed to increase the amount of your sum insured to the closest number of units or to the TAL minimum insured amount which is $15,000.

Can I keep the insurer I have now?

No. The trustee believes that changing the insurer is in the best interest of members and we won’t be able to offer your current insurance arrangements from 1 April 2024.

I have an open claim, what happens to my insurance?

If you are currently being assessed for, or you have an open claim, the information in your letter you received in January or February outlines what happens with your insurance. We’ll also provide more information to you during the claims process.

What happens if I want to increase or decrease/cancel my insurance before going to TAL? Should I wait?

You can increase, decrease or cancel your insurance at any time, there’s no need to wait. We’ll simply transfer whatever remaining insurance you hold, to TAL on 1 April 2024.

Why is the Insurance Service Fee changing?

Over the past few years, the Trustee has been steadily simplifying its Superannuation Product offer to deliver competitive and streamlined admin fees. From 1 April 2024 we’ll deliver further pricing reductions through reduced premiums with our new partner, TAL. This change in insurer will see an overall average reduction of 31% in premiums.

The cost to administer insurance is significant and remains the same going forward, so the Insurance Service Expense (ISE) will replace the Insurance Service Fee (ISF) to continue to recover these costs. The ISE is charged at up to 11.5% of the total monthly insurance premiums (excluding any stamp duty) and is capped at $30 per month or ($360 each year).

When the Trustee makes changes to the product, they act on members’ behalf by forming the view of what is in the best financial interest of members in the fund. 

Why has AMP introduced a Trustee Fee?

The Trustee Board of Directors manage the AMP Super Fund. They make sure the fund is properly administered, complies with relevant legislation, and is run in members' best financial interest. To oversee the AMP Super Fund, the Trustee incurs mandatory fees like regulatory levies and audit fees. The new Trustee Fee will cover these costs (other super funds also charge a similar fee). 

Where can I learn more/find support?

The letter we sent you in January/February 2024, includes an ‘additional information’ section that provides details about the changes to your insurance cover, charges and terms and conditions.